# In the matter of S.Bhanumathi

> NCLT judgment dated 2024-02-23. Citation: TCN-2024-NCLT-02406. The application was filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 23 Feb 2024
- **Citation:** TCN-2024-NCLT-02406
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sbhanumathi-1a75b8ac

## Summary

### Background

The application was filed under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 6(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. Mrs.S.Bhanumathi, the applicant, filed the application as a personal guarantor to M/s. Srivisha Infra Private Limited, the corporate debtor. The application seeks to initiate the Insolvency Resolution Process for the personal guarantor.

## Facts

Mrs. S. Bhanumathi, acting as a personal guarantor for M/s. Srivisha Infra Private Limited ('Corporate Debtor'), filed an application under Section 94(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process. M/s. Srivisha Infra Private Limited had taken credit facilities from Canara Bank, Egmore, Chennai, for which Mrs. S. Bhanumathi provided a personal guarantee. The Corporate Debtor defaulted on the loan, with the amount outstanding being Rs. 1,18,28,277/- as of 29.04.2022. The applicant placed a copy of the Demand Notice dated 30.04.2022 issued by Indian Bank under Section 13(2) of the SARFAESI Act, 2002. The guarantor served a copy of the application to every financial creditor and the corporate debtor. The applicant

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## Issues and analysis

### Issue 1: Whether the application for initiation of Insolvency Resolution Process by the personal guarantor …

**Ratio:** Section 94 of the IBC allows a debtor to apply for initiating an Insolvency Resolution

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**Reasoning:** The court observed that the personal guarantor had moved the application for initiation

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**Interpretation:** Section 94 of the IBC provides the legal basis for a debtor, including a

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**Application:** In this case, Mrs. S. Bhanumathi, being a personal guarantor and thus a debtor,

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** Mrs.S.Bhan…
- **Respondents:** M/s. Srivisha…

## Timeline

- **2022-04-29 — Date of D…**: The date on which the loan…
- **2022-04-30 — Demand N…**: Demand Notice issued by Indian Bank under…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94(1) — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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